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David Spong
Leading Organizations to Achieve:
Performance ExcellenceInspiring People to Take Actions for Success
David SpongPresident, Boeing Aerospace Support (Retired)
1998/2003 Baldrige Recipient
2
3
1991 – 2000
BoeingAirlift & Tanker
Programs
1998 Baldrige Winner
2000 to 2004
BoeingAerospace Support
2003 Baldrige Winner
Our Quality Journey
4
Starting PointsAirlift & Tanker
Programs 1998 Recipient
Organizational Type
Organizational Complexity
Starting PointCrisis
Documented ProcessesFrameworkInitiativesLocations
Reason for Baldrige
Approach to Baldrige
Aerospace Support2003 Recipient
Overall business model
Dispersed – 130+locations
Improvement
Service
Complex:Bus./Sites/Functions
Some
Yes
Some
Stable
Not recognized
Integrating existing approaches
Primarily one
Turnaround
Manufacturing
Primarily one program
No
None
Many
Chaos
Yes
5
40 and No More …Unless We Perform1992
Lack ofConfidence
QualityProblems
Late DeliveriesAdversarialRelationships
Cost Overruns
From Crisis to Success
6
40 and No More …Unless We Perform1992
Lack ofConfidence
QualityProblems
Late DeliveriesAdversarialRelationships
Cost Overruns
National QualityAward Winners1998
From Crisis to Success
7
“The Law of Change”
If you want a different outcome, you must change either the process, the product, or both.
The Corollary
If you always do what you have always done you will get what you have always gotten!
The Law
8
90
60
30
0
-90
-120
-150
-180
-30
-60
Day
s
120
AircraftP30P5 P10 P15 P20 P25 P35
1993 19941992 1995 1996 1997
P40
1998
P45
“Hold the Aircraft”
P50 P55
150
180
P60
20001999
Cultural Change
9
PlannedJourney
(’93) (Summer ’95)
1000 UnalignedProjects
(’91)
Strategic Direction
Work Group
Individual
Tactical Direction
Malcolm BaldrigePrinciples
Aligning the Focus
10
Airlift& TankerAirlift& Tanker
On-SiteCustomerOversight
On-SiteCustomerOversight
External CustomerExternal Customer
One Team Committed to Program ExcellenceOne Team Committed to Program Excellence
Reinvented Relationships with Customers
11
RelationshipExcellence
PerformanceExcellence
Customer Satisfaction Model
Customer Satisfaction
(Quality + Cost + Schedule) + Relationship = Satisfaction
12
Quality Timeliness
Efficiency Cycle Time
AN APPROACH TO. . .
• Cover everything we do
• Manage and improve through a single, disciplined approach
• Empower Owners
1.0 Enterprise Management
8.0 Support and Services
4.03.02.0 7.06.05.0
Program Core Process Family
Process Based Management
Closed Loop
321 4 5 6 7
Process Management
13
90
80
70
60
50
40
30
20
10
0Quality vs. cost Quality vs. schedule Schedule vs. cost
Perc
ent o
f em
ploy
ees
sele
ctin
g on
epr
iorit
y ov
er a
noth
er
100 1998 - 88%1999 - 95%2000 - 90%2001 - 93%
Percentageof Respondents
7370 70 72
2730 30 28
33 35 35 36
68 67 6568
32 3335
32
67 65 65 64
Employees Believe in Quality
14
Airlift & Tanker Improvements
200
300
400450
500550
600
0
100
200
300
400
500
600
700
1992 1993 1994 1995 1996 1997 1998
Bald
rige
Mid
-Ran
ge S
core
TQMS-IE Cal Qual MB
400 Points!
15
How Good You Think You Are
How GoodOthersThink YouAre
12
3
“Projects are most successful when top management takes ownership”
– Deming
Leadership Required
16
The Journey to a Zealot
1991… 1996…
John McDonnellCEO
Harry StonecipherCEO
LaunchedTQMS-IE
“Go For It”MBNQA
Baldrige Internal Assessment (TQMS-IE) … Tied to Exec Compensation … At each Business Unit
17
1991… 1996…
John McDonnellCEO
Harry StonecipherCEO
And Beyond
The Journey to a Zealot
LaunchedTQMS-IE
“Go For It”MBNQA
Baldrige Internal Assessment (TQMS-IE) … Tied to Exec Compensation … At each Business Unit
1998…
Award Ceremony
18
• Baldrige winning organizations have great cultures:– Collaborative
– Integrated
– Aligned
– Sharing
– Trusting
– Caring
• There are no ”Silver Bullets”
18
Observations
19
Accepted a New Job in 11/2000!
20
1991 – 2000
BoeingAirlift & Tanker
Programs
1998 Baldrige Winner
Our Quality Journey
2000 to 2004
BoeingAerospace Support
2003 Baldrige Winner
21
The Leader’s Role
Engines
Steering Communications Navigation Catering Entertainm
ent
Captain
The “Leader”
ManagementSet of processes used to keep people and technology running smoothly
LeadershipSet of processes that creates/adapts organizations to significantly change them
Uncharted Waters
22
Leadership Communication
The first time you say something, it’s heard
The second time it’s recognized
And the third time, it’s learned
William H Rastetter, CEO, Idec Pharmaceuticals Corp.
Relentless Repetition!
23
Culture – A Set of Shared Vision/Values/Beliefs/Goals
CorporateCitizen
Innovation
Teamwork
Agility
Sharing &Supportive
Learning
Diversity
Quality
CustomerSatisfaction
Integrity
StakeholderRequirements& Expectations
Safety
The Organization
Shared Value Filter
The Leader establishes the culture to be shared by his/her behavior
24
State of the Inherited Leadership Team
• Prior Leader Autocratic
• Un-empowered
• Dispirited/untrusting
• Mostly Non-believers
• Did not understand my Leadership style
25
I Did All the Usual Stuff!• Met with each member of the Leadership Team
• Met with the Customers
• Held meetings with the People
• Tried to understand the Business
Launched Continuous Improvement!PLUS
26
Plus!
• Personal Commitment• Knowledgeable• Staffed BE Office with:
•Believers•Experts•Consultants
• Lot’s of personal time• Dealt with non-believers
Consistent & Persistent with Passion
27
BusinessExcellenceDebbie Collard
Business Excellence Office
Businesses
FunctionsSites
Initiatives Deployment
AS
Business Excellence OrganizationReporting to the Office of the President
28
• We insist on integrity, first and foremost • We tell it like it is• We communicate openly and candidly in all our dealings• We respect, honor, and trust one another• We work toward consensus• Disagreement is healthy and encouraged, but once a decision is made,
we proactively support it• We have one conversation at a time• Our silence is consent• We focus on issues and ideas rather than titles or personalities• We actively listen and question to understand• We do not attack the messenger• We identify clear objectives and expectations for our meetings • We start on time, observe time limits, and end on time• We praise in public, we coach in private• We have a bias for velocity
Operating Principles
Have Fun. . . Enjoy the journey and each other
29
Spong
SLT
Bus & Site LT’s
All the way to the people who do real work!
Convert Direct Reports
30
A person who believes that using the
Malcolm Baldrige Criteria will drive an
organization to achieve world class
business results…
…and will lead their organization
in its use
Definition of a Zealot
31
“Conversion” to Zealots
Let’s use our future leaders!
Percent
0
20
40
60
80
100
Day 1 The Journey
“Sign on”(10)
“OMDB”(0)
We’reFrom Missouri
“Show Me”(compliant)(5)”
+5.8
Day N
Bye Bye !(0)
Zealots (10)(commitment)
32
• 2x4’s ?
• Leadership Passion ?
• Start the Journey ?
• Have a Plan ?
• Get Trained ? • Quest for Excellence ?• Positive Results ?• Go for an award
Yes to all of the above, except no 2x4’s and especially go for an award to get Feedback
How best to achieve conversion to Zealots
Employee Involvement (EI) Is it a Culture?
Is it a Belief?
Is it a Way of Life?"It is not a new program, project or process. EI is a cultural change in the way we treat each other and work together. It is a journey in which people apply their skills to improve individual, team and organizational performance continuously. This leads to employee satisfaction and improved business results.“
Raj Kanungo
Is it Teams?
Is it Belonging?
Is it a Process?
34
Leadership Drives the Employee Satisfaction Index
Leadership Effectiveness Deciles
10987654321
ES
I Per
cent
Pos
itive
90
80
70
60
50
40
30
78
7371
6662
6058
52
47
39
Poor Leadership Results in Low Satisfaction
Great Leadership Results in Top Quartile Satisfaction
Good Leadership Results in Okay Satisfaction
35
Executive Champion Requirements
• Learn & understand the criteria for your assigned element
• Identify needed improvements
• Work with Business Excellence Office to drive improvements
• Communicate throughout the organization
• Champion world-class approaches & lead by example
• Make a personal commitment to the Leadership Team for the
improvement of your element
36
• Not a Business Performance Review• Business Model• Internal Assessment• Gaps• Process to close gaps• Progress
Focused Offsites
37
Focused SurveyIDS– 58 Questions–1 Narrative question
– Results to only the Business,Function, Department? Level
– Results not actionable
Aerospace Support– 58 Questions– 3 Narrative questions
+ – 28 Focused questions
– Results to the Business, Program,Function, Site, to the manager levelwith 5 or more D/R
– Results actionableSummary for 17 key issuesExec summaries for each Bus,Site, & Function
38
0100
200
300
400
500
600
700
2001 20032002
AS Baldrige-based Assessment ScoreState/Local/Baldrige-based Score by Major SiteAward Recipient
Bald
rige
Mid
-Ran
ge S
core
Phila
delp
hia
Okl
ahom
a C
ity
St L
Wic
hita BA
L
Mes
a
So C
al
Ft W
alto
n Be
ach
BASC
Aero
spac
e Su
ppor
t Bal
drig
e W
in
400 Points!
Okl
ahom
a C
ity BASC
BASC
Aerospace Support Improvements
39
We Did It Again!
40
Boeing Aerospace Support’sRevenue Performance
2000 2001 2002 2003
PLAN ACTUALS AVG GROWTH
Started Baldrige
41
Boeing Aerospace Support’sEarnings Performance
2000 2001 2002 2003
PLAN ACTUALS
Started Baldrige
42
50%
50
54
58
62
66
1999 2000 2002 20032001
EI
ESIStarted Baldrige
Boeing Aerospace Support’sEmployees are more Motivated
43
Summary
44
Don’t study it long – Don’t change it! – Just Do it!
CC40170002.ppt
Summary
45
The Making of a World-Class OrganizationE. David Spong and Debbie J. Collard
Using a unique blend of stories, tips, charts, and tables that can be adapted to any organization, this book shares the stories, wisdom, and “silver bullets” gained by two divisions of the Boeing Corporation as they won the Malcolm Baldrige Quality Award. The “silver bullets” are the kernels of management wisdom that set this book apart and provide the simple insights that anyone can adopt. This book uses a systems perspective to provide solutions that will inspire leaders to champion such approaches, while also providing tried and true details and “how-to” applications to the in-house practitioners and consultants. Whether you are looking for tools and techniques to make your organization and processes more effective, or you are starting from scratch, this book provides you with a set of proven approaches to achieving excellence. The insights into excellence and the Baldrige journey that Spong and Collard have mastered have allowed their organizations to celebrate with great processes, loyal customers, engaged employees, high quality products and services, and significant profitability.
Where Do You Go from Here ?
46
QUESTIONS?
Thank You for Listening